Alcatel-Lucent to Cut 4,000 Jobs on 3Q Losses

Alcatel-Lucent on Wednesday posted its third consecutive quarterly loss, resulting in thousands of job cuts and the departure of the company’s CFO.

The world’s largest telecom equipment maker reported a net loss of $459.7 million in the third quarter of 2007. Revenue fell 11 percent.

Embattled CEO Patricia Russo remains on the job. Rumors have swirled that the Alcatel-Lucent board has lost patience waiting for Russo to announce a turnaround plan. That strategy, unveiled today, includes 4,000 more job cuts – for a total of 16,500 – and the replacement of CFO Jean-Pascal Beaufret with Hubert de Pesquidoux, who heads the enterprise division.

Alcatel-Lucent said it will save $577 million by the end of 2009 with the additional job cuts.

The telecom equipment sector has struggled over the past year as fewer operators invest in infrastructure. Alcatel-Lucent also has had problems integrating post-merger, adding to its woes.

Alcatel-Lucent www.alcatel-lucent.com

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines